As the use of digital assets like cryptocurrencies continues to grow, so does the IRS’s scrutiny of how taxpayers report these transactions on their federal income tax returns. The IRS has flagged this area as a key focus. To help you stay compliant and avoid tax-related complications, here are the basics of digital asset reporting. The definition of digital assets Digital assets are defined by the IRS as any digital representation of value that’s recorded on a cryptographically secured distributed ledger (also known as blockchain) or any similar technology. Common examples include: Cryptocurrencies, such as Bitcoin and Ethereum, Stablecoins, which are digital currencies tied to the value of a fiat currency like the U.S. dollar, and Non-fungible tokens (NFTs), which represent ownership of unique digital or physical...